Unions Support Increasing the Minimum Wage Rate Because

question 71

Multiple Choice

Unions support increasing the minimum wage rate because

• A)they want to encourage employment among the poor.
• B)they believe in a living wage rate.
• C)this will decrease the supply of labour in their industry.
• D)this will increase the demand for union labour in their industry.
• E)all of society gains from a higher minimum wage rate.

Recognize the role of innovation, risk-taking, and strategic alliances in entrepreneurship and business strategy.

Understand the concept of portfolio standard deviation and how it is affected by different types of stocks and their weightings.

Calculate expected returns on various financial instruments including stocks and portfolios.

Grasp the concept of the risk premium and how it is determined for stocks and portfolios.

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Margin of Safety

The difference between actual sales and the break-even point, which measures the cushion that a business has to withstand a sales downturn.

Sales Revenue

The total amount of money generated from sales of goods or services before any expenses are subtracted.

Operating Leverage

A measure of how revenue growth translates into growth in operational income, highlighting the impact of fixed costs on profits.